10 things you need to know before the opening bell

Here is what you need to know.

It’s a Fed day. Markets are pricing in just a 22% chance the Federal Reserve will raise its fed funds rate at Wednesday’s meeting, Bloomberg data shows. As always, the decision will cross the wires at 2 p.m. ET along with the Fed Summary of Economic Projections, and then Fed Chair Janet Yellen’s press conference begins at 2:30 p.m. ET. The US 10-year yield is unchanged at 1.69%.

The Bank of Japan altered its policy. The central bank announced it will target the shape of the yield curve, and aim’s to keep the 10-year JGB rate “more or less at the current level” of about 0%.

The British economy has cleared its first post-Brexit hurdle. The Office for National Statistics released its first report of a special series entitled “Assessment of the UK Post-Referendum Economy,” and it concludes the British economy has shown no major impact from the UK’s decision to leave the European Union. The British pound is little changed near 1.3100 against the dollar.

Crude oil is surging. West Texas Intermediate crude oil is up 2.2% at $45.00 per barrel after the latest weekly inventory data from the American Petroleum Institute showed a draw of 7.5 million barrels versus expectations of a 3.4 million barrel build.

Deutsche Bank is the riskiest bank in the world. That’s according to the latest data from the Federal Deposit Insurance Corporation, which says the bank’s leverage ratio is at 2.68%, well below the average of 5.6% for systemically important banks.

FedEx beat and raised its outlook. The courier giant earned $2.90 per share on revenue of $14.7 billion and said it sees full year earnings per share in a range of $10.85 to $11.35, which was a bit light of analysts’ estimates.

Microsoft announced a huge share buyback program. The tech behemoth said it will buy back $40 billion worth of stock, or nearly 10% of shares outstanding, and raise its dividend quarterly divided by $0.03 per share to $0.39.

Stock markets around the world are up. Japan’s Nikkei (+1.9%) led the advance in Asia and France’s CAC (+1.2%) is out front in Europe. S&P 500 futures are higher by 8.00 points at 2,139.00.

Earnings reports trickle out. General Mills reports ahead of the opening bell and Bed Bath & Beyond releases its quarterly results after markets close.

US economic data is light. Crude oil inventories will be announced at 10:30 a.m. ET.

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